U.S. Foreign Aid Conceptions Tension between interests and values M.A. Lourdes Aguas

Structure of the presentation Aid effectiveness Theoretical framework: postdevelopment USAID interests and values (history) 1)Development 2) Aid Reflections on current U.S. Foreign development aid

High Level Forum on Aid Effectiveness (OECD) Development interventions conceived in recipient countries (National Development Agenda) + Donor countries align behind these objectives and use local systems

Theoretical framework Postdevelopment: Development ≠ growth Development ≠ unidimensional path Inventing new narratives: Development = obsolete concept

USAID’s mission “We partner to end extreme poverty and to promote resilient, democratic societies while advancing our security and prosperity.” Moral duty + practical imperative (sense of world community) Wilsonian ideas = strong base of popular support for an active and engaged U.S.F.P

Source: Council on Foreign Relations (2009) Core of the American Ethos

“Foreign assistance matters. It’s not a gift to other countries, but an investment in our shared security and prosperity.” Secretary of State, Kerry (2014) Department of State and USAID Joint Strategic Plan How Wilsonian is the rhetoric of US foreign aid?

ARGUMENT: USAID conceives of development aid as both: A moral duty (Wilsonian) and A way to strengthen the global trading system (Hamiltonian) Beneficial to the U.S. for it mirrors the interests of several groups in American society. Development aid = relevant tool of USFP However: Is there a space for recipient country’s ownership?

Era of development aid…. Speech from US president Harry Truman (1949) “We must embark on a bold new program for making the benefits of our scientific advances and industrial progress available for the improvement and growth of underdeveloped areas. The old imperialism – exploitation for foreign profit – has no place in our plans. What we envisage is a program of development based on the concept of democratic fair dealing.” “Only by helping the least fortunate of its members to help themselves can the human family achieve the decent, satisfying life that is the right of all people.”

American Hegemony “All nations and all peoples are assumed to be or at least capable of becoming equal” (Walter Russell Mead, 2002) Aid Development FUNGIBLE CONCEPTS

PART I: Development

The notion of development Rostow’s modernization Theory (1958)

Redevelopment Sustainable Development (1987) Human Development (1990) Source: Esteva G (2010)

Despite the differences in the approach of development taxonomies by international organizations (WB, UN, IMF). The results are quite similar: World’s countries: Share of developing countries = 80 – 85% Share of developed countries = 15 – 20% Taxonomies ~ political interest Development conceptions and taxonomies Source: Nielsen (2011) Classifications of Countries based on their level of development

Development The notion of Graduation: Pioneers vs. Latecomers

Development and the Hamiltonian School of Thought Worldwide trading and investment system = More development Win-win relation Peace BUSINESS = HIGHEST FORM OF PHILANTHROPY

PART II: Aid

Wilsonian school of thought The U.S. should care about not only how other countries conduct their international affairs but also their domestic policies American religious missionaries: Exporting Christian values to the developing world “Backward countries should develop into western style democracies ” (Mead, 2002)

Edward Banfield (American Enterprise Institute) Examples of Aid Doctrines 1.World community as a basis of aid: humanitarian reasons. Where should we draw the line between national interest and the notion of world community? Why should the U.S. compromise its own welfare to increase that of the world as a whole? 2.Aid “because it is right”: Moral imperative. “The rich should sacrifice to help the poor”. The obligation to act morally is placed upon persons and not upon entities like governments or corporations 3. Aid for national self-improvement: Improve the quality of life of Americans (trade)

PART III: USAID Development Aid and Foreign Policy

Pillars of U.S.F.P. DiplomacyDefenseDevelopment USFP

USAID and USFP U.S. Department of State + USAID : Joint Strategic plan 2014 – 2017 Hamiltonian Wilsonian

Hamiltonian E.g. Environmental goods and services (WTO)

Shah (2014): USAID Administrator “Although we work far from home, our work remains first and foremost for our home: for the markets we open to American businesses, the skills of our young people we help build, and the threats to our shores that we help prevent. By advancing broad-based economic growth, democracy, and human progress, we energize global economy and represent the best of our values to the world”. Wilsonian + Hamiltonian = Wilmiltonian

Reflections on U.S. foreign development aid Great powers have guiding ideologies: Development = Hamiltonian values Aid = Wilsonian values Development aid = Hybrid nature 2 schools of thought: represent different stakeholders’ interests in the American Foreign Policy making process.

Reflections on U.S. foreign development aid However: Postdevelopmental perspective: Development aid = Complexity (actors + initiatives + etc) New generation of aid: Donor oriented approach seen as one of the main causes for the failure of development initiatives abroad. New approaches to development as a concept (E.g. “Endogenous development”) or substitute concepts (postdevelopment and “diverse economies”)